Interior Design Market Size, Trends & Outlook Report 2033

INTERIOR DESIGN MARKET OVERVIEW

The global Interior Design Market size was valued approximately USD 26.38 Billion in 2024 and will touch USD 45.59 Billion by 2033, growing at a compound annual growth rate (CAGR) of 6.27% from 2024 to 2033.

Interior design is about making the inside of a building look and work better. It's about choosing how things are laid out, picking colors, furniture, lighting, and other decor to make a space look and feel great. Interior designers think about what the space is for, who will use it, and how it should work. They want to make spaces cozy, functional, and stylish, all while matching the taste of the people who'll be there.

COVID-19 IMPACT

“Emphasis on Health and Wellness”

COVID-19 woke everyone up to health and wellness, shaking up interior design trends. Designers started incorporating stuff that boosts both your body and mind, like better air flow, awesome lighting, and non-toxic materials. Plus, there's this new thing called biophilic design, where they bring nature inside with plants and natural light to freshen up the air and create calm spaces. This trend is right on track with what people are longing for now: safe, cozy, and healthy spaces.

LATEST TREND

”Biophilic Design for Connecting with Nature”

One of the newest trends in interior design is biophilic design, where you bring nature inside. This can mean adding plants, using natural materials like wood, and letting in as much natural light as possible. The idea is to make a calm, natural space that helps the air and how you feel. With people wanting comfort and peace, especially after the pandemic stress, biophilic design is getting more popular in homes and offices.

INTERIOR DESIGN MARKET SEGMENTATION

By Type

Based on Type, the global market can be categorized into New Construction and Remodeling.

New Construction Design: New construction design is about designing the insides of new buildings, like homes, offices, or other spaces. It includes planning the layout and picking materials, furniture, and lighting. The market for this is growing steadily, especially in cities where new buildings are everywhere. Since people want modern and useful spaces, this trend will likely keep going.
Remodeling Design: Remodeling design is about updating or changing existing spaces, like giving a home a new look or redoing an office. It's popular with people who want to freshen up their space without starting from zero. This market is growing because people want more sustainable, stylish, and functional interiors. For businesses, remodeling helps old buildings look newer or brings in new tenants. With more focus on eco-friendly and custom designs, remodeling will continue to grow.

By Application

Based on application, the global market can be categorized into Residential and Commercial.

Residential Interior Design: Residential design makes homes feel awesome, like living rooms, kitchens, and bedrooms. It's all about the homeowner's taste and needs. This market is expanding because people are investing more in their homes, especially with remote work and cozy vibes in mind. Unique, stylish, and eco-designs are a hit, especially in cities and fancy homes.
Commercial Interior Design: Commercial interior design is about making offices, hotels, restaurants, and stores look good and work well. It's all about making sure the space fits the brand and feels great for workers or customers. This market is growing because businesses need spaces that are attractive, efficient, and flexible. As workspaces change, like open offices or hybrid setups, commercial design is adapting. Big trends like sustainability and technology are also driving growth.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

Driving Factors

”Increased Focus on Home Comfort and Functionality”

Now that remote work is here and lifestyles are changing, people are spending more on their homes. They want designs that are cozy and useful. Homeowners want spaces that can be for work and chill time, boosting the need for home interior design services. People are focusing more on feeling good and being comfortable, so this trend is pushing the residential interior design market to grow. It's all about spaces that do it all, ergonomic furniture, and showing off your personal style.

Restraining Factor

”Long Project Timelines”

Big interior design projects usually take a long time to finish. This can be a big turn-off for clients who want quick fixes or are in a rush. Delays in getting materials, construction problems, and long design processes can make clients upset, making them less likely to spend money on professional help. As a result, slow turnaround times can hinder growth, particularly in commercial design sectors where businesses need to set up spaces quickly.

Opportunity

”Rise of Smart Homes and Technology Integration”

The rise of smart home technology is opening up great opportunities for interior designers to add high-tech solutions to their designs. From smart lighting and thermostats to home automation systems, more people want their homes and offices to blend technology smoothly with style. Designers who can mix tech with good design, without losing functionality, will have a big advantage in this growing market. As smart homes become more popular, designers who specialize in tech integration will see more demand.

Challenge

”Labor Shortages and Skill Gaps”

The interior design world is really stressed right now because of a shortage of skilled talent such as designers, project managers, and craft experts. Since everyone is hungry for top-notch design right now, attracting and retaining these talents is becoming a real challenge. This skills shortage is causing project delays, lower quality work, and basically holding back the growth of design firms. Therefore, in order to remain competitive and stay top-notch, the industry must step up and focus on bringing in new faces, providing training, and addressing the shortage of skilled workers.

INTERIOR DESIGN MARKET REGIONAL INSIGHTS

North America

The interior design market in North America, especially in the US and Canada, is growing. People are spending more on home and office designs due to higher incomes and a desire to update their spaces. Smart technology, eco-friendly products, and sustainability are all the rage these days, truly driving the market. Also, with the rise of hybrid work models, people are craving for awesome home offices and modern workspaces. Despite the industry facing rising material costs and worker shortages, the North American market is expected to continue to grow.

Europe

Countries like the UK, Germany, France, and Italy are top dogs in interior design for both homes and businesses. They're all about quality, style, and eco-friendly solutions. And with those strict EU environmental rules in place, there's a growing hunger for energy-efficient designs, sustainable materials, and recycling. Luxury hotels and modern business spaces are also big markets, especially with the rise of flexible work setups. The European interior design market is expected to keep growing, with a strong focus on sustainability and innovation.

Asia

The interior design market in Asia is booming, especially in China, India, Japan, and South Korea. Economic growth, more people living in cities, and higher spending power are the main reasons for this. In big cities, the demand for home and business interior design is way up, thanks to the hot real estate market and more luxury living spaces. Plus, there's a big shift to modern, minimalist designs, and more focus on tech in homes and offices. Eco-friendly interior design is trendy in Japan and South Korea. Asian interior design market is growing, especially for homes and businesses.

KEY INDUSTRY PLAYERS

”Big Firms, Independent Designers, and Emerging Trends”

The interior design industry is super competitive, with big firms and solo designers battling for clients. Big companies shine by offering unique designs and building tight relationships, while smaller ones focus on specific needs or personalized touches. Tech like virtual design tools and 3D modeling helps designers show off their ideas better. Sustainability is a biggie now too, as clients want eco-friendly designs. To stay on top, companies are getting into new trends like smart homes and spaces that do more than one thing.

List of Top Interior Design Companies

Aecom
Gensler
Jacobs Engineering Group Inc.
Perkins and Will
Stantec Inc.

KEY INDUSTRY DEVELOPMENTS

In May 2022, the interior design startup Havenly, known for its digital services, expanded into physical spaces with its new IRL services. This initiative allows Havenly's designers to visit clients' homes in person, conduct measurements, and ensure alignment with the client's vision before delivering a virtual design via digital layouts and 3D renderings.

In March 2022, Modsy, a prominent female-led online interior design company, introduced a groundbreaking virtual remodeling service. This innovative offering uses 3D technology to enable customers to visualize and virtually explore every aspect of their remodeling project.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The interior design market is growing steadily because people want modern homes, offices, and hotels. Since we're spending more time at home, residential design now focuses more on comfort, being useful, and looking good. Commercial spaces are changing too, with a bigger push for productivity, employee happiness, and sustainability. Smart home tech and eco-friendly designs are also making the market bigger.

Looking ahead, the interior design industry looks bright. Tech like VR and AR will make designing a breeze. Sustainability will still be super important, with a bigger focus on saving energy and using eco-friendly stuff. As cities expand, people will see more demand for creative designs that squeeze the most out of small spaces. Overall, the market will keep growing because people and businesses want spaces that look good, work well, and are sustainable.